Facebook switches to Targeting Advertising Business Model

Interesting read from “Business Insider” on how Facebook originally structured it’s advertising business on old media metrics and subsequently put the company’s monetization strategy behind schedule, and with it, the opportunity to lead the commercializing of the digital advertising business. It is important to note that Facebook still generated just under $5 billion dollars in advertising revenue last year.

Now with the launch of Facebook Exchange (better known as FBX in the industry) this summer, the company is focused on selling re-targeting ads (cookie-based ads focused on intent or interest in a product/category) vs. consumer profile (demographics). The good news for Facebook is that re-targeting ads should be a growth engine for the company and start to deliver a greater return and increased Shareholder Value.

Read more: http://www.businessinsider.com/facebook-fbx-2012-9#ixzz27gDq4TCx


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